Black income versus green cost in NSW
14 Jun, 2012
Im delighted to see that (with a few exceptions) most of the papers are full of tripe and misleading statements about the cost of green schemes.
Im delighted because it means that those who don’t want renewable and other green schemes to succeed are desperate enough to try deception tactics.
The Daily Telegraph today ran the classic full page spread about how massive the impact of the carbon tax and green schemes are, and how its crippling everything. Bloody environment, way too expensive.
I view the Carbon Tax like the GST, Its gotta happen, other schemes are being scrapped anyway because the carbon tax should send the right message, and like the GST within a year, we’ll all be used to it. So lets ignore it for a second and focus on the biggest part of the electricity prices rises; networks costs.
In the NSW budget papers some interesting facts emerge.
Firstly, the government notes that “lower payments under the Solar Bonus Scheme due to fewer connections and adverse weather conditions” reduced the expected cost of the scheme. The 2011-2012 cost of the SBS was recorded as $138M and they say this amount will reduce by around $33.4M as a result. So that leaves an estimated 2012-2013 cost for the SBS at $105M.
Evil, expensive solar. Helping people reduce their expensive electricity costs and wrecking the budget. Tut Tut.
But how does this cost compare to just a tiny selection on non renewable energy returns that the NSW Government gets ? We took a look, and its not surprising why the Government keeps attacking solar and defending its non renewable assets. They are making truckloads of money and want to protect it.
In simple terms the NSW Government is predicting in 2012-2013 that it will get just over $2.1Billion dollars in dividends from the generation of coal fired electricity, coal royalties and distribution and transmission royalties. (nb; They get an additional $224M from supplementary coal royalties and $460M from income tax equivalents, but we’ll leave that out for now).
What is even more fascinating is the rate of change. Revenues from Black energy increased by 16% 2011 FYE to 2012 FYE and will increase again by 24% this financial year; 43% or $788M over just 2 years.
The much maligned source-of-all-evil Solar Bonus Scheme on the other hand, has actually reduced in cost by 24% or $33M between 2012 and 2013.
Lets cut the crap about green schemes costing the earth, eh?
Clearly, it is the State Governments greed for increased profits from generation, mining and network gold plating that are the culprit. And there is plenty they could do about it if they wanted to.
This is how it stacks up:
Fascinatingly, it also says “The Government has accepted a recommendation from the Independent Pricing and Regulatory Tribunal (IPART) that retailers should contribute to the cost of the Solar Bonus Scheme (SBS) from 1 July 2012. The mandatory contribution will reflect IPART’s assessment of the value of SBS energy to retail businesses”
When did the decision to force retailers to contribute become mandatory?
Its what we hoped and asked for, perhaps we missed some good news?